Employees FAQ 22

Must local government employers pay salaried employees overtime under the Fair Labor Standards Act?

Yes, in some cases.

The
Fair Labor Standards Act (FLSA) exempts certain categories of employees
from the general overtime pay requirements of the law. The categories
are executive, administrative and professional. Typically, employees in
these categories are salaried, which sometimes leads to the observation
that salary means no overtime under the FLSA. This is not correct. While
the amount of compensation, salary or other, is a factor in determining
whether an employee is exempt from FLSA overtime requirements, the
method of compensation is not a factor. In addition to the amount of
compensation paid, exempt status depends on the work performed by the
employee. Therefore, determining whether an employee is exempt from FLSA
overtime requirements does not depend on whether they are paid a salary
or by the hour. This means that a salaried municipal employee who is
not an exempt employee under the FLSA must still be paid overtime.